Another month has come and gone and so many of my clients are asking when this red hot real estate market is going to cool down! Unfortunately, the real estate market still continues to be a super hot market, but there is an ever so slight cool down beginning, I think! It somehow doesn't feel quite as frenzied in some areas, but, unfortunately, there are still lots of buyers out there and much fewer homes to choose from. So here is the State of the Real Estate Market Report for the City of Richmond for May 2022, compared to May 2021!
Some of the takeaways from this report:
Prices are still increasing. The average list price of homes sold in the city were almost $100,000 above the average list price of the homes sold in 2021! And the average sales price in 2022 was almost $40,000 above the asking price! So prices are continuing to climb above. Looking at the individual areas:
* Area 10 - this includes the Fan, Church Hill, Shockoe Bottom, VCU area - homes in this area sold about 8% above the asking prices
* Area 20 - this includes the Near West End and Mary Munford school area, Libbie/Grove area - homes in this area sold about 14% above the asking prices
* Area 30 - this includes the northside of the City, including Bellevue, Ginter Park, Highland Park - homes in this area sold about 7% above the asking prices
* Area 50 - this includes the southside of the City including the Broad Rock area, the area around the Veterans Hospital - homes in this area sold about 2% above asking prices
* Area 60 - this includes Westover Hills and Forest Hill areas - homes in this area sold about 13% above the asking prices
Time on the Market Still Is Very Tight. The average time a home sat on the market before a seller accepted an offer was 12 days - this is way down from the 19 days in May 2021 that it took a seller to accept an offer! Looking at the various areas of the city, all took less than 2 weeks to have an offer accepted on a home.
A Shortage of Homes On the Market Is Still Very Low. As you can see, there are only 211 homes that are active on the market as of June 3, 2022 - and only 27 homes that are in a coming soon status (which means they are coming on the market as active sometime in May). But there are 410 homes which are currently pending. And 339 homes closed in May 2022. So as you can see with a possibility of only 238 homes available for sale, the inventory levels continue to be extremely tight!
What does all this mean if you are thinking of selling your home, or you are looking to buy a home, or possibly both? If you are thinking of selling your home, now is a great time! You will have great equity in your house, which you can use to get into your next home! But if you must also buy a home, you need to know your strategy! It may mean buying that next home before you even sell your current home! It may mean selling your home now and waiting until the market cools down a little bit before buying your next home! And it may mean that when you are buying a home, the chances are pretty good you may be competing with other offers!
With this red hot market, there are strategies you may need to use to sell your home and get into the next home! And you may have lots of questions! Feel free to contact me and we can discuss how to maneuver this real estate market of 2022, whether you are buying or selling! I look forward to hearing from you!